Staff Correspondent:

The Bangladesh Energy Regulatory Commission (BERC) on Monday hiked the price of Jet A-1 fuel, also known as aviation fuel, by 5.52 per cent to $0.6401 per litre for international flights and by 4.75 per cent to Tk 98.02 per litre for domestic flights from the country’s airports for July.

The commission fixed the Jet A-1 fuel price upward considering the average Platts rate, the US dollar exchange rate, and the settlement rate of letters of credit (LCs) of the state-run Bangladesh Petroleum Corporation (BPC), as well as changes in diesel prices, transport charges of tank lorries and coastal tankers from June 5 to July 4, the commission said in a press statement on Monday.

A hearing was held at the BERC office prior to the fixing of the aviation fuel price.

The price will be effective from 12:00 am Monday night.

Prior to this hike, the BERC in May had reduced the price of Jet A-1 fuel by 19.12 per cent to $0.6066 per litre for international flights and by 15.70 per cent to Tk 93.57 per litre for domestic flights from the country’s airports.

Monday’s hike was the second time the energy regulatory commission fixed the Jet A-1 fuel price following a hearing.

Previously, the BPC would fix the price unilaterally following instructions from the Energy and Mineral Resources Division (EMRD) under the Ministry of Power, Energy and Mineral Resources (MPEMR).

The BPC usually imports around 600,000 tonnes of Jet A-1 fuel annually to meet the demands of both domestic and international flights operated by local and international airliners.

Some local petrochemical companies also produce Jet A-1 fuel by refining condensate.

With the hike in Jet A-1 prices, air ticket prices for both domestic and international passengers might become dearer, market insiders said.